Islamabad: Federal Minister for Energy Omar Ayub Khan on Wednesday announced the federal government’s ‘Alternative Energy Development Policy 2019’ framework, a news source reported. Under this provision, the executive aims to offer incentives to private investors in its bid to increase the total share of renewable energy in the energy mix to 30% by 2030.
To facilitate this measure, the government recently invited bids from companies for setting up various renewable energy projects across the country. The executive hopes to tap into the investment potential of up to USD 40 million by abolishing upfront tariffs and replacing them with competitive bidding practices as communicated under the new renewable energy policy.
Khan said that the government had already signed several renewable energy projects with 12 companies and the investments on this front amounted to a total of USD 700 million. These investors are also interested in manufacturing wind turbines and solar panels in Pakistan.
According to the new policy, the government will allot the site, identify the type of energy and award contracts to the lowest bidder instead of having investors choose the site, type of fuel and cost of the projects. The policy is being set to the Council of Common Interests for approval.
